A PERFORMANCE MEASUREMENT SYSTEMS DESIGN FRAMEWORK

Abstract

Performance Measurement Systems (PMS) are becoming ubiquitous in institutions for several reasons. PMS are being used to support actions in some day-to-day situations such as decision-making, communicating expectations, taking preventive measures and learning and understanding the processes, business environment and markets in which a company operates. There are a few reasons that lead to systems remain unchanged for an extended period, and often it requires the work of experts to design, analyze and implement a PMS. This paper presents a framework that, through a structured set of processes, guides the development of a PMS. This framework does not target companies of specific industries or sizes and is intended to be used to assess, design and implement a PMS for organizational units, such as departments, or even stand-alone initiatives, like projects.